Dioxin Emission That Results from the Production of Paper Is

question 462

Multiple Choice

Dioxin emission that results from the production of paper is a good example of a negative externality because

• A)self-interested paper firms are generally unaware of environmental regulations.
• B)there are fines for producing too much dioxin.
• C)self-interested paper producers will not consider the full cost of the dioxin pollution they create.
• D)toxic emissions are the best example of an externality.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the goods' sensitivity to price changes.

Price Elasticity

An indicator of the responsiveness of the quantity of a good demanded to its price variations, showing how sensitive the buyers are to changes in price.

Price Elasticity

An assessment of the responsiveness of product demand to changes in its pricing.

Demand Coefficient

A parameter in demand analysis that measures the sensitivity of the quantity demanded of a good to changes in its price or other factors.